Stellar and Baracoin to Bring Financial Services to Africa

Stellar partnered with Africa's digital currency aiming to create a low cost border free network and get the country out of poverty
06 February 2018   741

Stellar is a platform that connects banks, payments systems, and people aiming to move money quickly, reliably, and at almost no cost. On February 6 Stellar has announced its partnership with Baracoin, which is Africa’s Digital Currency created to provide a state of the art economic ecosystem and deliver modern financial services, from Cape to Cairo, at low cost and to the benefit of both trader and customer.

The partnership is aimed at building a low-cost, border free network that will connect underbanked African merchants and customers through blockchain technology.

As it was stated in Baracoin announcement, Stellar is dedicated to providing low-cost financial access to the unbanked all around the world, and transactions on the Stellar network cost very low, which will allowing Baracoin to lower the cost it passes on to its customers in service charges.

Speaking with the Stellar head of partnerships, Mr Ladipo over the past few weeks, I’ve seen just how committed they are to providing high quality financial services in Africa and have no doubt that this will be a long and fruitful partnership.

Dr Robert Maweni
CEO, Baracoin

Moreover, Stellar was chosen by Baracoin company because of its technical advantages as it is capable of processing 1000 operations every second, with a latency of just 2–5 seconds, and also can protect customers against scams and bad purchases.

At the moment of press, these are main market parameters of Stellar:

Average price: $0,273688 
Marketcap: $5 044 611 863 
24h volume: $324 690 000

New Morgan Creek Fund to Exclude Pre-Mined Crypto

Ripple and Lumen won't be included to Morgan Creek Digital Asset Index Fund
28 August 2018   216

Morgan Creek, which manages $ 1.5 billion in assets, launched its own crypto fund, the Morgan Creek Digital Asset Index Fund, but refused to include some large crypto-currencies. This is reported by Forbes.

For example, in the new fund, which was managed by the American company Bitwise Asset Management, such cryptocurrencies as XRP, developed by the Ripple, and Lumen (XLM) of the Stellar project, are not represented, as their release was carried out through the so-called pre-goal.

If there’s a central party that owns 30% or more of supply then we withhold those from the index. Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.

Anthony Pompliano
Partner, Morgan Creek Digital 

The index fund includes a set of 10 major cryptocurrencies weighted by market capitalization, which is rebalanced monthly. There are some other requirements, such as the presence of custodial solutions and a restriction on the concentration of trade.

When forming the fund, the risks of centralization of crypto assets were taken into account because of the increased probability of manipulating their prices and possible issues of regulators if such assets were recognized as securities.

We’re fully prepared and feel we’ve built something that institutional investors will find attractive regardless of how the assets are categorized. Whether they’re securities or not.

Anthony Pompliano
Partner, Morgan Creek Digital 

According to the co-founder of Bitwise co-founder Hunter Hosley, the main difference between the Morgan Creek Digital Asset Index Fund and the HOLD 10 fund launched by his company is the availability of the first inspection committee, which included Morgan Creek CEO Mark Yusko, Pompliano and Bitwise Research Department head Matt Hogan.

Hosley said that the decision of the committee to limit cryptocurrencies with pre-currency is caused by two main factors: fears about the opportunities for fraud, which are possessed by large holders of assets, and the doubts of regulators for which a high degree of centralization is an additional basis that allows to recognize crypto currency as a security.

The Morgan Creek Digital Asset Index Fund is already available for institutional and accredited investors. Hosley promised that the fund will be audited by Cohen & Company from this fall, the results of which will be published on an annual basis. The first report will be submitted in early 2019